Market Overview
The crypto market capitalisation, standing at $2.65T at the start of the week, has remained relatively stable over the last four days and is 2.2% below last week’s opening figures. For more than three weeks now, the market has been fluctuating mainly within the $2.60–2.72T range, having rebounded from the lower end of the range at the end of last week. The topic most widely discussed in the media, the impending rise in the Fed’s key interest rate, has proved unable to throw the market off balance, despite the growth momentum seen just under a month ago. Beneath the general lull in the market lie some fairly significant movements. Over the past 24 hours, the top gainers have been Filecoin (+22%), Algorand (+4.6%) and Near Protocol (+4.4%). The top three decliners among the most liquid coins are Dash (−2.5%), Immutable (−1.5%) and Cosmos (−0.9%).
Bitcoin received solid support from buyers at the end of the week, holding above $76K, and has gained nearly $1K since Monday morning, reaching $77.6K. The leading cryptocurrency is pulling back from the lower boundary of its consolidation range. From a technical perspective, a rise up to the region around $80K is unlikely to face significant resistance. However, the bulls may face a tough road ahead, given the headwinds posed by the market’s reassessment of monetary policy prospects, which are becoming more hawkish. On the other hand, the prolonged lull has alleviated short-term overbought conditions, as evidenced by the RSI on daily charts falling back towards the neutral 50 level.
News Background
Inflows into US spot Bitcoin ETFs have halted after three weeks of significant inflows. According to SoSoValue, net outflows from spot BTC ETFs totalled $462.7 million over the week. Inflows into spot Ethereum ETFs in the US have continued for four consecutive weeks, or nine weeks in total, excluding a nominal outflow in mid-August, amounting to $197.1 million over the past week.
CryptoQuant believes that for a new bull market in Bitcoin to be confirmed, the price must hold above $81.7K, where the 365-day moving average is located. In previous cycles, the bull market began after BTC held above this level.
US President Donald Trump met with his advisers to discuss the ethical standards set out in the CLARITY Act, a bill regulating the crypto market. An important procedural vote on this bill is scheduled for Tuesday in the US Senate and will be crucial to its progress through the legislative process.
According to Artemis, the volume of crypto lending on Coinbase reached a record high of $2.75 billion, driven by rapid growth on Coinbase Layer 2 and contributions from Morpho and Aave.
The FxPro Analyst Team
